Approval of Partnership with Minnesota Small Business Development Center (SPDC) and Acceptance of Grant

Dissent: None

Moved by President Erickson [23:22] · Seconded by Mr. Keller [23:30]

Andy Donahue, State Director for Minnesota SPDC, presented an overview of SPDC's no-cost consulting services for entrepreneurs, covering business planning, financing, and disaster recovery. He detailed their statewide impact, including $117 million in capital accessed and 216 new businesses in 2023, with a 95% client satisfaction rate. The proposed pilot project with Bloomington Port Authority is a novel 'city-ish' partnership in Minnesota, aiming to expand services locally. SPDC offered a $60,000 grant, which the city would match. Concerns were raised about the long-term success rate of businesses, to which SPDC responded with an estimated 75-80% retention over five years and a 'turnaround team' for struggling businesses.

Parking Ramp Budget Contingency Approval

Dissent: None

Moved by Mr. Peterson [1:17:22] · Seconded by Unknown [1:17:28]

Holly introduced the item, explaining that a formal budget contingency for the parking ramp project was needed due to an administrative oversight. Luke clarified that while a general budget of 'up to $20 million' was considered, a specific contingency had not been formally approved. The request was for a 10% contingency on the total subcontractor bids ($16,389,332), amounting to approximately $1.6 million. This contingency would allow flexibility for project needs while committing to remain under the overall $20 million project budget, with any further contingency requests requiring additional approval.

Resolution Authorizing a Levy for the Year 2025

Dissent: None

Moved by Mr. Peterson [1:34:49] · Seconded by Unknown [1:35:02]

Holly explained that this is the initial step in a six-part process for budget approval, setting the maximum allowable levy amount for the Port Authority. The Port's mission has expanded citywide to include business assistance and creative placemaking. The proposed 2025 levy request of $2.5 million is primarily intended to build operating reserves and establish a Strategic Acquisitions Fund for future land purchases, a new strategic direction for the Port. This requested amount represents 78% of the maximum allowable levy of $3.2 million, providing flexibility for future economic development initiatives.

Port Authority's Preliminary 2025 Budget for the Port Authority Development and General Funds

Dissent: None

Moved by Mr. Peterson [1:35:32] · Seconded by Unknown [1:35:39]

Mary Kay Hanan detailed the preliminary 2025 budget, distinguishing between the General Fund (South Loop restricted, funded by HRA transfers, typically breaks even) and the Development Fund (citywide, funded by the property tax levy). The budget includes adjustments for creative placemaking staff salary allocations, shifting some expenses to 'material supplies and services'. The Development Fund projects a surplus of $672,000, designated for property acquisition and building financial reserves. These reserves are crucial for managing cash flow, as property tax revenue is collected seasonally, ensuring operational stability throughout the year and funding new initiatives like the SPDC partnership, facade grants, and city marketing.